Makati–(PHStocks)–First Metro Investment Corp.(PSE: FMIC) ended the year 2011 with a consolidated net income of PhP2.2 billion despite volatile market conditions. This is 28.8% higher than the PhP1.7 billion net income of the previous year. Year-on-year return on equity stood at 20.56%.
The Treasury Group alone made PhP1.2 billion income, up 34% from the previous year. Net interest income from Treasury portfolio is PhP434 million, driven by higher levels of securities portfolio. Gains from government securities trading is PhP615 million while fee income from securities distribution is PhP116 million.
The Investment Banking Group made a total fee income of PhP275 million, about 2% or PhP4 million higher than the previous year’s fees. The bulk of this revenue was generated through various significant deals that included Beacon Electric Assets Holdings Inc.’s PhP11 billion Corporate Notes, Puregold Price Club Inc.‘s (PSE: PGOLD) PhP8.6 billion Initial Public Offering, Manila Water Company Inc.‘s (PSE: MWC)PhP10 billion Corporate Notes, Metropolitan Bank and Trust Co.‘s (PSE: MBT) PhP10 billion Stock Rights Offering, among others.
First Metro President Roberto Juanchito Dispo explains, “We have once again demonstrated our dominance in the domestic debt capital market in 2011. With our in-depth understanding of the Philippine capital markets and extensive distribution capabilities, we have successfully participated in 83.4% of the total peso-denominated domestic capital market issuances amounting to PhP771.2 billion. This includes the PhP687.5 billion volume of fund raising activities for the Republic of the Philippines.”
The Strategic Finance Division earned a net interest income of PhP159 million in 2011, while the Investment Advisory Group made a total net income of PhP38 million in trading gains and dividends from investment in stocks.
First Metro’s assets at the end of the year is PhP79 billion, 23.1% more than the year-end balance in 2010 of PhP64 billion. Capital Funds reached PhP11.4 billion, 14.8% higher than the 2010 year-end level.
“We expect another good year in 2012 as many converging positive factors are imminent – GDP is expected to grow by 6%, OFW remittance to increase by 7%, inflation will recede to 3% from 3.5%, exports to recover from -4.3% to 5.7%, interest rates to further compress by 50bps from belly to long end, while short term rates will correct and the PSEi will reach above 5,000 level,” Dispo added.